Student Loan Debt = Slavery

Is student loan debt really synonymous with metaphorical slavery? Well, for me it is, but for others it may be "no" or even a mixed "yes and no."

First, lets explore what slavery means. Looking at the definition of slavery at dictionary.com it reads "severe toil; drudgery; the state of being under the control of another person".

Second, what does holding a student loan debt, or any monetary debt in general, really mean? Of course that you owe money to someone. Usually the lender, or creditor, expects those funds lent to you paid back over time plus interest.

This is what most people think of when they think of debt. However, there is more.

What are you actually doing when you borrow money and create a debt? You are spending your future earnings! This is extremely risky since you really aren't guaranteed what your future earnings will be. Even if you've worked the same job for the past 20 years, how do you know that it will be there for the next 20? How about if you get sick or disabled and can't work? Borrowing against what you think you'll be making isn't exactly slavery. But there's more.

Time is money, and money is time. Life is made up of time, and we only have a limited and unknown amount of time on this Earth. Ergo,

MONEY = TIME = LIFE

When spending future earnings (i.e., borrowing money), future LIFE is spent too!

Essentially, you will spend a portion of your life toiling to pay your creditor his original investment PLUS his profit which is OWNED by him. So he owns your future money ... your future time ... your future LIFE. And the greater the sum you borrow, and the higher the interest rate, the more of your life he will own.

Sounds like slavery to me!

Of course, the situation isn't as bad if you are making a wage that will allow you to repay your debts quickly. You will spend less time working for someone else, and more time working for yourself. The degree at which you are a slave to your lender is relative and dependent on how much of your life is spent "settling up" with your creditor.

But how about if you over extend yourself? Declaring bankruptcy will clear your debt, and you will start with a clean slate.

NOT WITH STUDENT LOANS!

It is extremely difficult to erase student loan debt. The only way is to prove "undue hardship" which essentially means that you are either dead or in a vegetative state.

So a student loan, both government and private, serves as the proverbial "ball and chain" for many borrowers who were ironically searching for a "better life" through education when taking on the original debt. What if you find you cannot afford to pay your student loans back? Student loan creditors are backed by a fortress of laws to protect THEM. Unfortunately, there are few laws protecting student loan borrowers unlike those with consumer debt (credit card) or mortgages. You will be harassed by lenders, late fees tacked onto your principal loan amount, your wages or social security benefits garnished, and tax refunds intercepted. And this is until the day you die. Your student loan will snowball into a huge amount that you will never be able to pay off (unless you hit the lottery). How does this happen? Compound interest - which I will discuss in a future post. Your life long enslavement will be guaranteed.

I am lucky. I took out student loans and can repay them. Well, for the moment anyway. I make a good salary only IN PART due to my education. I probably make a higher salary than I would have if I didn't have a degree. But does this insure greater wealth for me by retirement than someone who only earned a high school diploma or a 2 year degree? Hmmmmm, not necessarily. I will explore this in later posts.

Next: Not Everyone Needs to Attend College